Infosys Q2 Results | Net profit rises 4.7% to ₹6,506 crore, revenue up 5% YoY; dividend declared: 5 key highlights

Infosys Q2 Results: Infosys announced its July-September quarter results for fiscal 2024-25 (Q2FY25) on Thursday, October 17, reporting a rise of 4.7 per cent in consolidated net profit at ₹6,506 crore, compared to ₹6,212 crore in the corresponding period last year. India's second-largest information technology (IT) service provider's revenue from operations in the second quarter of the current fiscal rose 5.1 per cent to ₹40,958 crore, compared to ₹38,994 crore in the year-ago period.

“We had strong growth of 3.1 per cent quarter-on-quarter (QoQ) in constant current in Q2. The growth was broad-based, with good momentum in financial services. This stems from our strength in industry expertise, market-leading capabilities in cloud with Cobalt and generative AI with Topaz, resulting in growing client preference to partner with us”, said Salil Parekh, CEO and Managing Director (MD), Infosys. 

Also Read: Infosys beats Wipro as European clients spur growth

Here are 5 key highlights of Infosys' Q2 scorecard:
 

1.P&L Account: Income, Revenue

On a sequential basis, Infosys' net profit rose 2.2 per cent compared to ₹6,368 crore in the preceding April-June quarter.  Revenues in constant currency (CC) terms rose 3.3 per cent YoY and 3.1 per cent sequentially. Earnings before interest and tax (EBIT) stood at ₹8,649 crore, up 4.4 per cent sequentially, compared to ₹8,288 crore in the preceding June quarter. EBIT margin for the September quarter remained flat at 21.1 per cent. 

The results indicate a steady increase in client spending at the leading software services exporter, which earns over 80 per cent of its revenue from Western markets. Revenue in US dollar terms stood at $4.894 billion, registering a growth of 3.8 per cent from the preceding June quarter.

2.Dividend, stock grants

The IT major's board declared an interim dividend of ₹21 per equity share and fixed October 29, 2024, as the record date for the dividend. Infosys also said November 8, 2024, is the payout date for the interim dividend. Infosys has declared 51 dividends since October 2000. In the past 12 months, Infosys Ltd. has declared an equity dividend amounting to ₹46.00 per share.

At the current share price of ₹1,968.1000, Infosys dividend yield is 2.34 per cent. "Based on the recommendation of the Nomination and Remuneration Committee, approved the grant of 22,880 RSUs to six eligible employees under the 2015 Stock Incentive Compensation Plan effective from November 1, 2024. These RSUs will vest over a period of two to four years," said Infosys in a regulatory filing to the stock exchanges.

3.Revenue Guidance

The Sahil Parekh-led tech giant raised its revenue guidance for FY25 on broad-based recovery in demand, particularly from its key financial industry clients. The bellwether has raised its revenue guidance for the full fiscal year for the second consecutive quarter. It now expects constant currency revenue growth between 3.75 per cent and 4.5 per cent for the current fiscal, higher than its earlier guidance of 3 per cent to 4 per cent.

The company had raised its guidance in the June quarter from the 1 per cent to 3 per cent range it started the year with. The upward revision comes on the back of a ramp-up of mega deals. For the full year, Infosys, however, maintained its margin guidance. It expects EBIT margins or operating margin for the fiscal to be between 20 per cent and 22 per cent.

4.Vertical segment growth, deal wins

Growth in earnings was led by manufacturing, energy and financial services. Growth was projected to be driven by the ramp-up of large deals, increasing traction in generative AI deals, and cost optimisations. The large deals' TCV (total contract value) was at $2.4 billion.

5.Attrition rate, headcount

Importantly, the company, after six consecutive quarters of drop in employee strength, added about 2,500 employees on a net basis in the September quarter. Attrition rate stood at 12.9 per cent versus 12.7 per cent quarter on quarter.